Today Germans will take to the polls for the Federal election and the prediction polls are suggesting that Angela Merkel will secure her position as chancellor for her fourth term. However for the first time in over six decades the same prediction polls are suggesting it’s likely that the AfD, a far right party, will also gain seats in parliament.
In regards to GBPEUR exchange rates, even though a far right group could gain a few seats, if Angela Merkel does retain her position as chancellor I expect the euro to strengthen and therefore GBPEUR exchange rates to fall.
For new clients that have been in touch in recent weeks, many that are holding onto sterling waiting to purchase euros, purchased last Friday when Theresa May was given her Brexit speech. GBPEUR exchange rates have improved 6 cents in four weeks, however most of my clients wanted to hold on to see if Theresa May provided further strength for the pound, however when this started looking unlikely thats the time my trading line didn’t stop ringing.
This week I expect the euro to strengthen earlier in the week and the pound to continue to be sold off due to Theresa May’s speech. I wouldn’t be surprised to see GBPEUR fall to the lower 1.12s by the close of play Monday. However UK GDP numbers Wednesday morning could provide a small spike in the market once more which I think new clients should take advantage of as I believe GBPEUR exchange rates could be heading for 1.10.
Next month the ECB are set to make the ‘bulk of the decision’ in regards to monetary policy according to the President of the European Central Bank. The decisions he is referring to is how to proceed with the €60bn quantitative easing program. With the US announcing they will be clearing their balance sheets in the upcoming years, I expect the ECB to follow trend and announce they will be tapering the program. This is why I think the euro will strengthen considerable. Good news for people selling euros to buy pounds.
The currency company I work for has won numerous awards for exchange rates therefore it enables me to trade GBPEUR / EURGBP at rates better than other brokerages and high street banks. I would recommend sending an email with a brief description of your requirements and your timescales (this is very important, the length of time you have will change your options) and I will email you with my strategy and the process of using our company email@example.com. Dayle Littlejohn.
If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands!